Your Guide to Buying Auto Insurance

Auto Insurance

Frequently Asked Questions

Do red vehicles cost more to insure than other vehicles? No. Your insurance company does not consider the color of your vehicle when calculating your insurance premium. Factors that insurers consider include your age, the kind of vehicle you drive, your claims history, in some states your credit history and your driving record.

Do I need to purchase insurance before I buy a new car? If this is your first car, yes, you'll have to buy auto insurance before you drive your shiny new car off the dealer's lot. If you are financing the purchase, the lender will require that you buy a policy with comprehensive and collision coverages. Not all states require the purchase of liability coverage, however, and you can find out which ones do by reading Which states require drivers to buy liability insurance?

What can I do to protect myself against uninsured drivers? Purchasing uninsured/underinsured motorist (UM/UIM) coverage can protect you against uninsured drivers. In many states, UM coverage is required by law. UM coverage will pay for medical bills and pain and suffering if you are hit by an uninsured driver.

Which coverages pay for damages to my vehicle? Depending on what kind of damage your car suffers, one of your physical damage coverages — comprehensive or collision insurance — will pay for the damages. If your car is hit by a deer or other animal, stolen, catches on fire, or is vandalized, your comprehensive coverage will kick in. If you crash into something and crunch your car, your collision coverage will kick in.

My teenager just got a driver's license. Do I have to add him to my policy? It usually makes good financial sense to add your teen as a driver to your existing policy, but only after he gets a permanent license. In addition, if you're driving an expensive car, it might make more financial sense to buy your teen a safe, older vehicle and get him a policy of his own.

I've just been in an accident. How will the insurer issue the check to repair my car? If the claim is being paid by your insurer, the check will llikely be made out to you and the body shop. When the claim is being paid by the other driver's insurer, it's likely that the check will be made payable to you alone.